Dhanlaxmi Bank is poised to enter into the retail banking business in July this year. The bank plans to mop up Rs 150 crore through a bond issue. The money will serve as tier-II capital and help the bank bolster the bank?s capital adequacy ratio (CAR). The bank?s current CAR is 14.29. ?To achieve our business expansion targets we need to maintain a healthy CAR. As a part of the process, we are now raising Rs 150 crore through a corporate bond issue next month,? said chief financial officer, Bipin Kabra.
According to Kabra, in the current year, the bank?s loan book has grown by about 50% to approximately Rs 5,000 crore. Kabra believes the loan book could grow even faster next year on economic recovery. Over the next couple of years, retail assets are expected to constitute about 30% of the total loan. At the end of March 31, 2009, the bank?s total advances were Rs 3,196 crore.
Detailing the bank?s retail plans, Kabra said, ?Initially, we are going to roll out the business from 46 cities and smaller town across India. We will be offering products in secured loan category only, such as mortgages, loans against property and vehicles. Later, we will add personal loans to our suite of products.? The bank will also hire 2,500 new employees in the current fiscal of which 600 employees would be exclusively for the retail business.
